Problems of Competitive Strategy Choice According to Industry and Regional Factors

Abstract

An essential condition for sustainable development and maintenance of long-term competitiveness of a company lies in the formulation of an adequate and appropriate strategy. Strategic decisions should be based on a correct understanding of the results of systematic analysis carried out by managers to form sustainable competitive advantages. The following aspects are contemplated: industry and regional conditions within the strategic areas of activity and interests of the organization, prevailing forms and types of strategic interactions, level of innovative potential of the industry and region, and specific influencing factors of macro and micro levels. However, not only the socio-economic significance (efficiency and rationality) of the decision itself is really important but also the speed, and even more precisely the timeliness of its implementation, predetermined by the dynamics of industry factors. This paper examines the relationship of innovative strategies recommended to companies with the stage of the industry life cycle, along with the specifics of territorial and regional factors. It is argued that the use of classical competition tools or the use of innovative ones, including radical strategic approaches depend on the specifics of industry and regional factors. As an example, the logic and directions of innovative solutions for an energy company are considered.

Keywords

• business model
• competitive advantages
• radical competitive strategy
• strategic areas of activity
• territorial-regional factor